Louis Cammarosano: Russia’s Gold Holdings Are Now Larger Than Russia’s U.S. Treasury Holdings

The value of Russia’s gold holdings just exceeded the value of Russia’s U.S. Treasury holdings. Here a look into the significance…

by Louis Cammarosano of Smaulgld

Russian Gold Reserves Swell as U.S. Treasury Holdings Shrink

The value of the Central Bank of Russia’s gold reserves exceeded the value of their U.S. Treasury holdings for the first time in April. The U.S. Treasury department revealed that Russia’s holdings of U.S. Treasuries fell from $96.1 billion in March 2018 to 48.7 billion in April 2018. According to the Central bank of Russia, their gold reserves were worth $81.1 billion in April 2018 up from $80.5 billion in March 2018.

Today, the Central Bank of Russia revealed that their gold reserves increased by another 600,000 ounces of 18.666 tons in May bringing their gold reserves to 1928.461 tons worth $80.511 as of the end of May 2018. Despite the increase in gold tonnage the value of the Central Bank of Russia’s gold reserves fell to $80.511 billion in May down from $81.1 billion at the end of April.

Russia does little trade with the United States and has been subject to a series of U.S. inspired sanctions for the past few years. As a result, while Russia had been working on increasing its overall foreign reserves in recent years, it focused more on adding gold than U.S. Treasuries.

The drop in April of $47.4 billion in U.S. Treasuries from March was the largest shedding of U.S. Treasuries by the Central Bank of Russia since September 2016 when it shed $11 billion in U.S. Treasuries taking its then total down to $74.6 billion. Since October, 2016, however, Russia began rebuilding its U.S. Treasury holdings which peaked at $108.7 billion in May 2017.

Russian Central Bank Gold Reserves Rise to 1928.416 Tons in May.

  • Russian gold reserves are the fifth largest in the world.
  • Russia added 600,000 ounces of gold (18.6620861 tons) to reserves in May.
  • Russia added a record 224 tons of gold to reserves in 2017.
  • Since June 2015, the Central Bank of Russia has added over 646 tons of gold to reserves.
  • Overall Russian reserves fell from $459.883 billion in April to $456.640 in May.
  • Russian holdings of U.S. Treasuries were at $48.1 in April 2018.
  • Gold reserves worth $80.511 billion constitute 17.63% of overall Russian reserves.

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Editor’s note: This is an excerpt from an extensive post over on Smaulgld. For the entire post use this link or the one at the top of the article.